Agenda and minutes

There were no declarations of interest.

To appoint a Chair and Deputy Chair for the 2020/21 Academic Year.

RESOLVED

That Karen Burns be appointed as Chair and Susan Marsh be appointed as Deputy Chair of the Schools Forum for the 2020/21 Academic Year.

To consider the minutes of the meeting of the Schools’ Forum held on 16 July 2020.

Consideration was given to the minutes of the meeting of the School’s Forum held on 16 July 2020.  It was noted that Lisa Gallagher had sent apologies for this meeting.

RESOLVED

That, with the amendment stated above, the minutes of the meeting of Schools’ Forum held on 16 July 2020 be approved as a correct record.

To consider the attached report of the Director of Governance and Pensions.

Consideration was given to a report of the Director of Governance and Pensions, giving details of the Terms of Reference for Schools’ Forum, which included the guiding principles and constitution of the Forum.  The Terms of Reference had been established to provide an overview of the purpose and functions of the Schools Forum with guiding principles covering the expectations of all Schools Forum members in relation to their role as a member, to ensure the consultation and decision making was effective and fair

The documents reflected the Department for Education guidance for Schools’ Forum published in September 2018 and updated in May 2020. 

In considering the report, members noted that were currently 7 vacancies within Schools Forum, for this academic year, which included:

• 3 Maintained Primary School representatives
• 2 Academy Primary School representatives
• 1 Secondary Academy representative
• 1 Maintained Special School representative

Members undertook to raise the matter at suitable forums and groups and agreed to feedback through the Clerk and Chair of Schools Forum in advance of the next meeting.

Rosario Sarno was introduced to the Forum as Governor Representative for Academy Special Schools.

Simon Brereton explained that he had previously been a member of Schools’ Forum and was happy to be re-appointed representing Maintained Primary Schools.

The Deputy Chair stated that there had previously been a Governor representing Academy Secondary Schools, who had not attended Schools Forum for some time.  It was agreed that the Clerk would contact this representative to confirm membership and provide an update with regard to this vacancy.

Andy Card announced that he would be retiring from Schools’ Forum.  As a result, an additional vacancy within the Maintained Primary School sector would be created.

RESOLVED

(i)            That the Terms of Reference, Forum Principles, Constitution and membership of Schools’ Forum be approved for publication on the Council’s website.

(ii)          That current vacancies within Schools Forum membership be raised at suitable forums and groups, as appropriate 

To consider the attached report of the Assistant Director, Finance and the Assistant Director, Education.

Consideration was given to a report of the Assistant Director of Finance and the Assistant Director of Education.  This provided an update of the surplus balances held by schools at the end of the 2019-20 financial year, alongside details of the current balance mechanism scheme and balances for 2020-21.

It was explained that school balances had reduced by £0.322m or 5% compared to 2018-19, with Primary sector balances being reduced by £1.01m and Secondary sector balances showing an improved deficit position, having reduced a small deficit to a surplus by £0.299m.  In addition, it was highlighted that Special sector balances had increased by £0.469m.

The movement in school balances was discussed and it was explained that 2 Primary Schools closed the year with a combined deficit of (£24,383), whilst 49 Primary Schools held a combined surplus of £5,927,243.  There were 2 Secondary Schools closing the year with a combined deficit of (£1,179,580), whilst 4 Secondary’s held a combined surplus of £1,456,617.  5 Special Schools also held a combined surplus balance of £876,894.

Reference was made to the changes in the Balance Mechanism Scheme for 2019-20, which included:

• The % thresholds for surplus balances increased from 8% to 12% in Primary and Special Schools
• The % thresholds for surplus balances increased from 5% to 9% in Secondary Schools
• An interest bearing Capital Reserve was established to allow schools to transfer balances set aside for specific capital projects
• The clawback of surplus balances was applied to balances held in excess of 2 consecutive years, and at a rate of 50%
• Any balances clawed back from schools was used to offset High Needs Block overspend, subject to compliance with regulations
• The clawback agreement would be reviewed annually
• Exceptional circumstances would be considered with regard to clawback

It was stated that, taking into account these changes, all surplus balances had been reviewed and those schools that exceeded their approved surplus balance had been contacted and advised that these surplus balances may be at risk of clawback at the end of 2020-21.  Forum members were informed that there were 15 schools above the approved surplus balance at the end of June 2019. 

However, it was explained that the number of schools with surplus balances above the permitted level had reduced this year following the threshold being raised.  There were currently 8 Primary Schools and 1 Special School with balances above the permitted level.  Each of these schools had submitted plans to the Local Authority to advise on the reasons for holding this surplus.  It was explained that this would continue to be monitored and that the final position would be brought back to Forum to in order to consider any exceptional circumstances and whether the clawback mechanism should be invoked.

Members of the Forum were made aware that, at the end of the academic year 2018-19, there were 5 schools that closed the year with a deficit.  At the end of 2019-20, 2 of these secondary schools were still operating under a licensed deficit.  Similarly,  ...  view the full minutes text for item 11.

To consider the attached report of the Assistant Director, Finance and the Assistant Director, Education.

Consideration was given to a report of the Assistant Director of Finance and the Assistant Director of Education providing an update on the latest school finding announcements.  The report provided information with regard to the DFE spending announcements and some context for the potential impact of the Council’s position.  Forum members were made aware that Dedicated Schools Grant (DSG) announcements at this stage covered the Schools Block, High Needs Block and Central Service Support Block.  However, Early Years Block information would not be shared at this point.

Forum members were made aware of the 2021-22 allocation of funding on a national basis in comparison to 2020-21.  It was highlighted that there had been an overall increase of £3.2bn, of which £2bn related to existing pay and pension grants.  With regard to the allocation for Tameside MBC, the provisional figure had increased by £12.5m, excluding growth.  It was stated that £7.5m of this increase related to the Teachers’ Pay and Pension Grant, which was protected and must be passed directly onto schools.  It was also explained that the further £5m represented a 3% increase on 2019-20 cash levels.

An overview of the main changes was provide for Forum members, including detailed explanation of the Teachers’ Pay and Pension Grant (TPPG), Sparsity Factor, IDACI Bandings, Prior Attainment, Minimum Funding guarantee (MFG) and Minimum Per Pupil Funding Levels for 2020-21, as outlined in the report.

It was highlighted that 2021-22 would continue to be a soft formula for Local Authorities to administer funding due to the impact of Covid-19.  It was also explained that the DFE had confirmed they would look to a future date for a hard formula implementation.

A question was raised with regard to pay grants and the ability of schools to fund pay rises, particularly when schools have high levels of staff who had reached the upper pay scales.  It was acknowledged that this presented a complex issue.  However, it was explained that the Teachers’ Pay Grant was introduced to fund teachers’ pay in September 2018 and September 2019 and this grant had not increased beyond these years.  However, the 3% that had been added to the basic entitlement this year and the similar increase last year represented be the increase to fund these pay awards moving forwards.  It was, therefore, confirmed that the increases on the basic entitlement represented the inflationary increases in pay awards.

With regard to High Needs, it was made clear that the current announcements indicated an increase in funding by a further £730m or 10% nationally.  It was also stated that Local Authorities had seen an increase between 8% minimum and 12% capped increase.  It was explained that the funding formula for High Needs remained largely unchanged with the exception of some technical changes with regard to the cap, TPPG and MFG.  Members of the forum were informed that Tameside had received the maximum increase possible, capped at 12% (before import/export adjustments and recoupment).

Forum members’ attention was drawn to Table 3, which presented  ...  view the full minutes text for item 12.

To consider the attached report of the Assistant Director, Finance and the Assistant Director, Education.

Consideration was given to a report of the Assistant Director of Education and the Assistant Director of Finance.  The report outlined the budget position for the financial year 2020-21 and provided an update on the Early Years’ final outturn position for the financial year 2019-20.

Forum members were made aware that there was a forecast surplus of £0.050m on the Schools Block.  This related to rates rebates for schools that had recently converted to Academy status and actual rates charges being lower than estimated.  It was also explained that Schools Forum would be updated again, in January 2021, due to the timing of the census and that any surplus was proposed to be contributed to the DSG deficit.  In addition, it was highlighted that a small surplus of £0.003m was also projected on the Central Services Schools Block due to the cost of licences being slightly less than estimated.  Projected deficits were also discussed, with the High Needs Block having a projected deficit of £3.543m and a projected deficit of £0.466m for the Early Years Block.

With regard to the High Needs Block, it was stated that the in-year projected overspend was £3.543m, after the Schools Block transfer.  However, it was made clear that the growth was estimated, at this time, and that work was continuing with regard to accurately predicting the cost of future growth.  It was explained that, when looking at the previous financial year, it would appear that a significant part of the growth had occurred in the Autumn term.  With this in mind, it was envisaged that a clearer picture of this year’s cost of growth may be seen by the end of this term.

Members of the Forum were informed that  the overall settlement for Early Years had increased by £0.278m.  However, it had previously been reported that there would be an estimated £0.296m in the final settlement.  It was stated that the reason for this variation was that the actual settlement for Universal Entitlement of 3 and 4 years olds was lower than estimated (£0.013m).

It was explained that the estimated surplus of £0.547m was transferred to the reserve at the end of 2019-20 financial year to support the wider deficit on the DSG.  It was also stated that the £0.018m reduction in surplus should be covered by the projected surplus for 2020-21.  An overall settlement for the Early Years had increased to £17.261m and a detailed update of the Early Years Block was provided for members, along with explanation with regard to significant financial pressures in this sector relating to sustainability.

It was stated that the final settlement for Early Years funding would be announced in July 2021 and that, as a result of COVID-19, the DFE had advised that they would be changing the measurement of the adjustment.  Members were informed that projections would continue to be updated throughout the financial year to take into account the actual uptake and that this would be reported to Schools Forum.

Members discussed the  ...  view the full minutes text for item 13.

To consider the attached report of the Assistant Director, Education.

Consideration was given to a report from the Assistant Director of Education.  The report outlined the Local Authority’s proposed protocol for contributions towards the School Condition schemes, previously agreed through the Asset Management Planning and Advisory group.

It was explained that funding for condition work in community and voluntary controlled schools was received through the Devolved Formula Capital and that the Council also receives an allocation from Government.  However, it was highlighted that these combined amounts were less than the value of the work required.  It was stated that there had been an allocation of £1.3m, which had subsequently been increased to £1.8m, in-year.

Forum members were made aware that there had previously been an agreement with schools for a contribution scheme towards condition works.  However, it was highlighted that this had not been fully implemented.  This protocol was, therefore, seeking to reinforce this previous agreement and, with this in mind, the general principles were outlined.

It was stated that, under this protocol, the day to day management of the safety and use of school buildings and their sites would rest with the Governing Body of the school and that it would be the responsibility of the Governing Body to undertake appropriate, planned and preventative maintenance.  However, the protocol would ensure that there would be appropriate contributions from all parties towards condition work. 

It was explained that schools would be expected to fund minor condition projects from within their DFC allocation up to a value of £10,000 for primary schools and £25,000 for secondary schools.  It was also confirmed that funding for other capital works, such as the purchase of IT equipment would not be covered under this protocol.  It was also stated that investment would be prioritised on keeping school buildings safe and in good working order through tacking poor building condition, building compliance, energy efficiency and health and safety issues.

Members of the Forum were informed that a report on the proposed School Condition Contribution Protocol had been discussed by the Schools Funding Group in April of this year.  This had included a number of different proposals on how the contribution element of the proposed Protocol could work and the following options were presented:

Option 1 - The Council would ask for a contribution of £10k for primary schools and £25k for secondary schools to schemes costing more than these amounts.  The Council would then contribute the rest of the amount.

Option 2 - As with Option 1, the Council would ask for a contribution of the first £10k for primary schools and £25k for secondary schools.  An additional amount of £50 per pupil would also be contributed.  It was suggested that this would enable better differentiation between schools of different sizes, and would reflect the different levels of annual funding allocated to schools of different pupil sizes.

Feedback demonstrated that all members of the Schools Funding Group were unanimously in support of contributing an amount to ensure that the School Condition budget could stretch further,  ...  view the full minutes text for item 14.

RESOLVED

That the next meeting of The Schools Forum be held on Tuesday 24 November 2020 at 10am.